Sharp drop in mainland tourists + labor regulations lead to closure of Kenting Bay Yayi Hotel

Video: Is Kenting tourism facing another collapse? Bay Yayi Hotel hit by wage arrears again

Kenting’s tourism industry has been plagued by ongoing turmoil. In addition to high consumer prices deterring Taiwanese visitors, the number of local tourists has been plummeting in recent years. Coupled with factors such as the “one fixed day, one flexible day” labor policy, the operational costs for accommodation providers have become unsustainable. Following repeated reports of wage disputes, the Kenting Bay Yayi Resort Hotel will officially cease operations starting today.

Has Kenting lost its charm? This year, visitor numbers during the New Year’s holiday dropped by 20%. According to a report by the Liberty Times, the Kenting Bay Yayi Resort Hotel in Checheng, Pingtung, has shut down as of today. The operator admitted that the sharp decline in mainland tourists, combined with the impact of the labor policy, was the final blow to the hotel.

The operator explained that to comply with the “one fixed day, one flexible day” labor regulations, they had to increase monthly expenses by nearly NT$400,000 to hire hourly workers to maintain the hotel’s 24-hour service. Despite the significant investment in manpower, the number of guests has not improved, leading to mounting losses. As a result, the hotel could not pay salaries on time and was forced to announce its closure.